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Former Treasury Department advisor Susan Ochs on how Bear Stearns' losses and lawsuits impact JP Morgan earnings.
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JPMorgan facing a civil lawsuit over alleged activity by Bear Stearns the floor.
Being acquired by JPMorgan back in 2008 CEO Jamie Dimon says he did the -- a favor when he bought the company and now is -- for -- And I forgot the exact number -- I'm I'm -- what kind of five to ten billion dollars on various things would be different now.
And yes I put -- -- -- category.
Since -- -- former advisor for the treasury and TARP joins me now with how all this gonna shake up for the bank and also for shareholders.
Hello get any -- is reports come out of first you make of his comments humor in Washington you were working at treasury Elvis is going on -- surprise when he said yesterday.
Well the interesting thing about what he said he didn't say he wouldn't do it again he's at the close call and that's because -- some really.
Good assets is part of Bear Stearns one of them is -- of the physical building which he talked about and that and that talk.
But another one is -- clearing operation comments securities clearing is a really unglamorous back office function but it's a cash cow kind of business.
You know market that markets are down people need to clear their trades.
And so that's a really good asset that they got at Bear Stearns and he knows that's I think long term it's still gonna have wound up being a good thing for them to -- -- also was very honest and it is the first time he's really kind of come out so here's what I was really saying behind closed doors in 2008 he said.
I told senior regulator at the time please take -- consideration when you wanna come after us down the road.
For something that Bear Stearns said JPMorgan was asked do this by the federal.
Government.
I mean fair or not he -- it don't go 3% in the first dead.
That's true but he also knows -- when you -- company using a liability than he did talk about in again in that speech he did say that they knew that that was an issue.
And -- part of the losses that they've taken have been NASA right down to have an all just been about the lawsuits that are coming so.
It there it you know they knew -- they were getting into and I think maybe he took a gamble and ending didn't happen -- -- thought that at that it the end of the day I still think that this is -- -- about the last look at the stock because -- market is up about 28%.
Year over a year I'm sure a lot of shareholders and hope that it would be higher.
I even more -- at this point do you think as he is saying -- Marty spent the last ten million dollars on Bear Stearns do you think that the losses are over with regards to this transaction.
Well they still have this lawsuit pending and that's the one being -- actually seeing -- a lot of places in the financial industry right now that they overhang on stocks is about lawsuits and you know Libor is still coming down the pike and it's not just.
The federal investigations but they're also issuers all the municipalities who feel like they didn't get the interest rates they could -- because they were amazing offer that's artificially low Libor.
They're talking about a class actions -- So that's still a big part of the -- -- that the market right now request legal problems at Wells Fargo FHA come after them New York attorney general's office more issues from Wells Fargo earnings are coming out what Heidi fell.
I you know they still have a I think a strong business they have one of the best sort of retail operations out there.
That the legal thing is an issue -- and I'm one of the things I was looking for an -- earnings tomorrow is going to be what as a mortgage business look like you always wanna see.
Is the -- business actually improving you know right now -- so much complexity in financial reporting.
But you can't look at the they beat estimates or miss estimates -- have to be digging into the under nine business and you know.
Are they increasing lending Susan Knox great to have you on a day like today and -- she comments certainty and are both watching thank you very.
